Ceretto calls for fiscal responsibility, votes against debt service bill

by jmaloni

Press release

Thu, Mar 21st 2013 08:20 am

Assemblyman
John Ceretto, R-I-Lewiston, sent a clear warning of what he views as
the consequences of New York's mounting debt crisis by voting
against the debt service budget bill.

Ceretto
said this bill will authorize the state to take on more debt at a
time when New Yorkers are already burdened by the fifth highest
debt-per-person ratio in the country.

"Each
New York resident is on the hook for $2,940 because of irresponsible
spending by Albany, and this does not even include the debt that has
been incurred by public authorities," Ceretto said. "I am very
concerned about how this debt will affect our ability to spend money
on important programs today and in the future. I am also worried that
this massive debt, if not controlled, has the potential to negatively
impact the financial security of future generations."

The
total amount of state-supported debt in New York is estimated to be
$54.8 billion for fiscal year 2013-14. However, Ceretto said this
number alone does not tell the whole story. He said what he called
"back-door borrowing" and authority debt significantly increase
the debt obligation of all New Yorkers. He said "back-door
borrowing" occurs when public authorities issue debt without voter
approval. The debt incurred by public authorities in this process
comes out to a "staggering" $243.7 billion, he added. He noted
that, while the authorities are currently responsible for this debt,
if the authorities default on the debt, New York taxpayers would be
directly on the hook for these debt payments.

"My
vote against this legislation is intended to send a message that New
York needs to gain control over its debt problem. The track we are
currently on is unsustainable and a course correction is needed to
get the problem under control," Ceretto said. "It is our
responsibility as elected officials to see that we do not pass our
debts down to our children. We must give them the best possible New
York that we can."